The stock market has surged over 35% since April, sparking curiosity about October’s performance. October is known for dramatic sell-offs, like the 1987 and 2008 crashes. On Oct. 10, the S&P 500 fell 2.7% due to President Trump’s new China tariffs, reigniting the trade war.

Historically, the S&P 500 has finished October higher 59% of the time since 1950, with an average 0.9% return. November is usually the best month, up 69% of the time with a 1.9% return. October’s dips often set the stage for gains in November, December, and January.

Although October historically favors buying opportunities, caution is warranted due to rich valuations and trade war risks. Economic cracks, like rising unemployment, may prompt the Fed to cut interest rates further. A quarter-point cut on Oct. 29 has a 98% probability, benefiting borrowers but signaling economic concerns.

Read more at Yahoo Finance: How often do stocks finish October higher?